Quovo, a data platform that provides connectivity to financial accounts, today announced the launch of Autoverified Micro-deposits (AVMs), a new offering that enables financial services providers to streamline client onboarding and ACH payments and transfers.
The patent-pending product leverages Quovo’s industry-leading account aggregation API to send and verify the receipt of micro-deposits into accounts connected to the Quovo platform.
In bypassing the onerous requirement for users to come back and manually enter micro-deposit amounts, Quovo AVMs enable timely and seamless verification of account ownership for payments and transfers.
The traditional micro-deposit process is not particularly user-friendly, with the National Automated Clearing House Association (NACHA) estimating that at least 30% of customers drop off prior to confirming the micro-deposits.
“In terms of institutional coverage and security, micro-deposits remain an effective method of verifying account ownership, a crucial first step in ACH transactions and client onboarding,” said Lowell Putnam, CEO and co-founder of Quovo. “By coupling account aggregation with micro-deposits, and removing the need for customer action to confirm the deposit amounts, we have developed a hassle-free verification experience that will reduce onboarding drop-offs and enable customers to start transacting faster.”
Autoverified Micro-deposits are an enhancement to Quovo’s credentials-based Instant Authentication, which uses the company’s Authentication API to immediately verify account ownership by pulling relevant account identifying data. With Quovo Instant Authentication and now AVMs, organizations can expand authentication coverage to thousands of financial institutions, even those which may not immediately support instant account verification.